"How low can we go...?"

jojo80_2

Good evening, just wondering if you could shed a bit of light onto a query...

With everyone talking at house prices and drops etc, I'm not sure how cheeky/realistic to be. Is it all a matter of the property is worth what I'm willing to pay and what they are willing to accept!? Or is there a more methodical way of working it out- should I look at prices from the past e.g. 2003 prices and say we are a bit above that? Or should I look at taking a certain percentage off the original (last year's) asking price?

I know plenty of people will say hold off for now, but we're looking at a long term move (5 years +); house is literally 5 mins from all family, school and work committments. Original asking price was 150,000 for 2 bed terraced (laughably overpriced for my city), after several smaller reductions, now reduced to 130,000 (still comparitvely expensive). Wondering "how low can we go..."

Thanks and have a good evening!
Jo

teaspoon1

Go as low as you want. The buyer sets the price, not the seller OR the agent. The buyer decides what a house is worth. It is then up to the seller to decide whether to sell at that price or hang on and end up chasing the market down in a year's time, kicking themselves that they didn't accept X offer at the time. Go low and you will eventually find someone who bites.

It's your money and your mortgage at end of the day. I will be trying to minimise mine as far as possible (very MSE!).

teaspoon1

P.S. I have heard it said that if you are not embarrassed by your offer, then it's too high.

Hectors_House

jojo80 wrote: »

Good evening, just wondering if you could shed a bit of light onto a query...

With everyone talking at house prices and drops etc, I'm not sure how cheeky/realistic to be. Is it all a matter of the property is worth what I'm willing to pay and what they are willing to accept!? Or is there a more methodical way of working it out- should I look at prices from the past e.g. 2003 prices and say we are a bit above that? Or should I look at taking a certain percentage off the original (last year's) asking price?

I know plenty of people will say hold off for now, but we're looking at a long term move (5 years +); house is literally 5 mins from all family, school and work committments. Original asking price was 150,000 for 2 bed terraced (laughably overpriced for my city), after several smaller reductions, now reduced to 130,000 (still comparitvely expensive). Wondering "how low can we go..."

Thanks and have a good evening!
Jo

Have you been able to find out what the house last sold for?

If you know the postcode you can use nethouseprice. This is how I found out the house I'm looking at hadn't changed hands in the last 10 years and someone was looking to make a £60k profit from a repossession.

I then went in with a lower offer and the EA is strongly advising the bank to accept it as it's better then what it will fetch if it goes at auction.

I based my offer on the value of the property (estimated) in 2002 and the rate my wages have increased in that time and think I've made a realistic offer.

JF77

teaspoon1 wrote: »

P.S. I have heard it said that if you are not embarrassed by your offer, then it's too high.

Good Point! I offered 10k under the asking price in 2006. When I called to make the offer I closed my eyes and said it quickly. My offer was refused and 1 year later it sold for the price I offered:rotfl:

I reckon it would fetch £20k less than it sold for in the current market.

greenerleaf

Take an objective look at other properties for sale in your price range. Then decide if yours is at least as good. Remember that the factors that you think are important may not be important enough to other people to make them pay more than they need to. You buyer will be viewing other properties around the same asking price, so if yours is over priced, the buyer will notice. If your property has some real plus points, and is well presented, then the right buyer may be willing to pay more than for similar properties, but not that much more.

teaspoon1

greenerleaf, useful advice for sellers there but I think the OP is a buyer (am I right?).

jojo80_2

Thanks for all the posts! Yes you're right I'm a buyer rather than a seller, no chain and ready to go, just needed to hear your encouragement & that it's ok to be planning on making such a significantly reduced offer!

I've looked on the nethouseprices site- interesting stuff, it appears that £130,000 would have been considered to be at the upper end of the price range for this road even at the peak in 2006 or 2007. Don't know what they were thinking of when they put it on market for £150,000.

Thanks again- I need to do my sums and compare the prices before working out my offer!

Jo.